Verify the Developer’s Pedigree
Before falling for a glossy brochure, the first step is to investigate the developer. In a market with a mix of seasoned players and first-timers, a developer's track record is a crucial indicator of future performance. Ask critical questions: How many
redevelopment projects have they successfully completed and delivered? Visiting their past projects can provide a real-world assessment of construction quality and maintenance. Furthermore, use the MahaRERA website to check for project registration, completion timelines, and any complaints filed against the builder. An experienced developer with a history of timely delivery in redevelopment is better equipped to handle the complex approvals and construction challenges inherent in such projects.
Scrutinise the Legal Paperwork
A redeveloped property’s legal foundation is more complex than that of a new project on vacant land. The developer's right to sell to you is derived from an agreement with the original housing society. As a buyer, you must ensure this chain of title is clear. Key documents to verify include the Development Agreement, the society's consent resolution, and all necessary municipal approvals. Ensure the project has a valid MahaRERA registration, which is mandatory for marketing and sales. This registration provides a public record of project details and timelines. Hiring a good property lawyer to conduct due diligence on the land title and project approvals is a small price to pay to avoid future legal complications.
Understand the True Cost of Ownership
The advertised price of a flat is rarely the final amount you pay. In Mumbai, additional costs can inflate the total outgo by 15% or more. Budget for statutory charges like stamp duty (around 6%) and registration fees. If the property is under construction, a 5% GST will be applicable. Beyond these government levies, developers often add charges for amenities, floor rise, and preferential locations (PLC). Also, factor in one-time costs like society formation charges, advance maintenance deposits, and the price of parking spots, which can be significant. Creating a detailed cost sheet that includes all these elements is essential for an accurate comparison between different projects.
Compare Carpet Area, Not Just Configuration
In real estate, space is money. It is essential to compare properties based on their RERA carpet area—the actual usable space within the walls of your apartment. Do not be swayed by terms like 'super built-up' or 'saleable' area, which include common spaces and can be misleading. A 2BHK in one project could have a significantly different carpet area than a 2BHK in another. The Development Agreement should clearly mention the carpet area, and this is the number you should use for any price-per-square-foot calculation. This ensures you are comparing the true size and value of the properties you are considering.
Assess Project Timelines and Possession Risk
Redevelopment projects are notorious for delays, often due to complex approvals or disputes. A project that is just beginning with “talks are on” carries a much higher risk than one where the development agreement is signed and approvals are in place. Check the project's committed possession date on the MahaRERA portal. A construction-linked payment plan offers some protection, as you pay the developer as they achieve specific construction milestones. It's also wise to check which banks have approved the project for home loans, as this indicates a level of due diligence has already been completed by financial institutions.
